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Lagoon Estates want to build 55 'high quality' student studios over four floors and a replacement retail unit, which could be split into smaller arcade units if traders decide to band together and buy it.

Fore Street development

If they can't, it could be one large single business.

A public consultation was held on Friday October 17 and attended by just over 30 people. It began late because the project manager was unable to supply easels and drawings.

The main issues raised included the height of the building, the impact on public parking spaces and disruption from students themselves.

Fore Street development

The impact on Fore Street during its construction was also raised, with traders worried that the road would be partially blocked off by a crane.

However, the developer plans for all construction traffic to use the one way system in Smythen Street.

An architect statement reads: "The proposed design aims to enhance the Western Quarter area and provide a building which sits comfortably with neighbouring buildings in terms of use, materiality and style of architecture."

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"The council’s own Conservation Area Appraisal recognises that the poor quality postwar redevelopment of the upper part of Fore Street has been detrimental to townscape quality and this detracts from the character and appearance of the western part of the conservation area.

Fore Street development

"We consider that the proposal will not result in any harm to the significance of the conservation area and that its redevelopment has the potential to be beneficial to the locality and setting of neighbouring listed buildings and other designated assets.

"It will continue and contribute to the history of buildings which have developed on Fore and Smythen Street, and give fresh life and longevity to the site.

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John Street, the narrow route running alongside City Arcade, would be slightly widened to 'open up and animate' the street.

The development was welcomed by the owner of The Fat Pig pub, which is next to its Smythen Street entrance.

City Arcade in the 1990s

Mr Lothian, who also owns Tabac on Queen Street and The Pig and Pickle on Heavitree Fore Street, said: "In my considered opinion only private investment can be relied upon to improve Fore street and the West Quarter.

"As such I am in favour of the this project as in conjunction with the developments at Renslade House and the old garden machinery site [Radmore and Tucker] it should bring some much welcome income to this part of the city.

"The city arcade is well past it’s sell by date and in need of a face lift."

The arcade has seen many businesses come and go over the years, including Devon Diecast Models which closed in 2015 and the Little Orange Cafe which has relocated to South Street.